The iHeart podcast business is not for sale, iHeartMedia said on Wednesday, 11 November, hours after a Bloomberg report that the company was weighing a sale sent its shares sharply higher. The company said it has no plan to sell the unit, which it called a core strategic growth engine. Bloomberg had reported that iHeart held talks with investment bank Moelis and Co. and possible investors about selling part or all of the business.
Shares jumped 11 per cent after the report and rose 16 per cent on Wednesday, after falling 65 per cent over the previous five days. The rise showed how far the stock had dropped before the report, and how much value investors attached to a possible deal. iHeart is the largest radio station owner in the United States, and the iHeart podcast network is the largest in the country, the company says, with shows that include some of the best known names in audio.
A company spokesperson said: “While we don’t generally comment on rumors or speculation, I can tell you that we have no plan to sell our podcasting business. iHeart has built the number one podcast publisher in America, with unmatched scale, premium talent, and strong financial performance. Podcasting is a core strategic growth engine for our company, and we continue to invest in expanding its reach and potential, including through video podcasting.”
Why the iHeart podcast unit drew interest
The iHeart podcast business has been one of the company’s strongest performers. Podcast revenue reached $174 million in the latest quarter, up 24.6 per cent from a year earlier, while company revenue rose 3.3 per cent to $1 billion. Adjusted earnings before interest, taxes, depreciation and amortisation fell 17 per cent to $170.5 million over the same period.
The network includes shows such as Stuff You Should Know, Las Culturistas and The Breakfast Club, along with a partnership with Charlamagne Tha God’s Black Effect network. The iHeart podcast unit has been one of the bright spots in the company’s results, with revenue growing by almost a quarter in a year. Bloomberg reported that the talks were at a preliminary stage and that no deal may happen. The report described a possible sale as a way to raise cash and lift a struggling share price.
What the iHeart podcast denial means
The denial was firm, but it did not end questions about the company’s finances. Its share price had fallen 65 per cent in five days before the Bloomberg report, and investors had treated the podcast unit as the most saleable part of the business because it is growing while the wider company grows slowly. The iHeart podcast unit’s growth is the reason buyers would want it, and the reason the company says it wants to keep it.
iHeart plans to report the iHeart podcast business as a separate standalone segment from 2027, splitting it out of the Digital Audio Group. The change will make the unit’s results easier to see, and it was announced on the company’s earnings call on Monday. Executives have said they plan to keep investing in podcasts, including their video reach.
The report followed earlier talks about a sale of iHeartMedia itself. Reports in late May said early-stage talks about a sale of the company to SiriusXM had stalled. One obstacle in those talks was what to do with the broadcast radio division, according to reports at the time. The company reported its third-quarter results on Monday, and executives used the earnings call to set out the plan to report podcasting as a separate segment from 2027.
What comes next for iHeart
The company has not said whether it will make any further statement about the Bloomberg report. Its next scheduled update is its fourth-quarter results, when investors will look for the podcast unit’s revenue and for any change in the company’s debt plans. For now, the iHeart podcast business stays inside the company, and its shows keep recording.